Incoterms 2000 - International Commercial Terms Philippines

INCOTERMS is abbreviation of International Commercial Terms, which were defined in 1936 by International Chamber of Commerce (ICC).

Since that time have been several revisions and updates of Incoterms. Incoterms are supposed to define respective roles of buyer and seller in arrangement of transportation and other responsibilities and clarify at what exact time change of ownership of merchandise is taking place. They are used in conjunction with a sales agreement or other methods of transacting the sale.

A careful use of Incoterms is essential because they are related to particular modes of transportation.

EXW,CPT, CIP, DAF, DDU and DDP are commonly used for any mode of transportation.

FAS, FOB, CFR, CIF, DES, DEQ are used for sea and inland waterways.

EXW ( incoterms 2000 ) Ex Works - Title and risk pass to buyer including payment of all transportation and insurance cost from seller's door. Used for any mode of transportation.

FCA ( incoterms 2000 ) Free Carrier - seller delivers goods into charge of carrier, international carriage is not paid by seller, if the carriage is unloaded at dock of seller or a different place where shipment is available unloaded to international carrier or agent.

FAS ( incoterms 2000 ) Free Alongside Ship - Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside shop by seller. Used for sea or inland waterway transportation. export clearance obligation rests with seller.

FOB ( incoterms 2000 ) Free on Board - Title and risk pass to buyer including payment of all transportation and insurance cost once delivered on board ship by seller. Used for sea or inland waterway transportation.

CIF ( incoterms 2000 ) Cost, Insurance and Freight - Title and risk pass to buyer when deliverd on board ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.

CPT ( incoterms 2000 ) Carriage paid - Title, risk, insurance cost pass to buyer when deliverd to carrier by seller who pays transportation cost to destination. Used for any mode of transportation.

CIP ( incoterms 2000 ) Carriage and Insurance Paid - Title ans risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation.

DAF ( incoterms 2000 ) Delivered at Frontier - Title, risk, responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation.

DEQ ( incoterms 2000 ) Delivered Ex Quay (Duty paid) - Title and risk pass to buyer when delivered on board ship at destination point by seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation.

DDU ( incoterms 2000 ) Delivered Duty Unpaid - Seller fulfils his obligation when goods have been made available at named place in country of importation.

DDP ( incoterms 2000 ) Delivered Duty Paid - Title and risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation.